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AI-Driven Cyber Threats Put Asian Banks, Businesses on High Alert

AI-assisted cyberattacks are increasing pressure on South Korean and Japanese organisations, prompting regulators to strengthen defences as experts warn automation makes hacking cheaper, faster and more accessible.

Written By : Poulami Saha
Reviewed By : Pranchal Srivastava

South Korea and Japan are strengthening their cybersecurity systems after a rise in attacks that experts say highlights how artificial intelligence is making cybercrime easier to execute. Businesses and financial institutions are facing mounting risks as AI tools help attackers automate tasks and target vulnerabilities with less technical expertise.

Banks, Businesses Face Growing Cyber Threats

Nine South Korean banks and two major churches are investigating cyberattacks that may have involved AI tools. In Japan, Daiwa Securities, SoftBank and convenience store operator Lawson have also reported cyber incidents.

Japan recorded 86 cybersecurity incidents in September, an increase of around 18% from August and 37% from July, according to data from TrendAI. The country also reported more incidents in the first nine months of 2026 than during the whole of 2025.

Cybersecurity firm CrowdStrike linked the South Korean bank attacks to a suspected 26-year-old individual based in China. The company said the suspected attacker used a Chinese-developed AI agent and Anthropic’s Claude Code.

According to CrowdStrike, “ The campaign demonstrated how AI could help an attacker with limited technical skills conduct effective operations. Investigators believe the individual was motivated by financial gain. South Korea recorded 1,236 cyber incidents in the first half of 2026, up 20% from a year earlier. Government data showed ransomware reports increased 76.8%, while distributed denial-of-service attacks rose 56.7%.”

Regulators Push for Stronger Defences

Experts warn that AI-assisted attacks could also make it harder for security teams to distinguish malicious activity from legitimate behaviour.  

The recent incidents have prompted authorities in both countries to strengthen cybersecurity measures. South Korea’s Financial Services Commission has directed financial industry associations, regulators and affected executives to complete a 12-point cybersecurity self-assessment.

Although the reported breaches have not yet caused material financial losses, analysts expect potential regulatory penalties, customer compensation costs and higher cybersecurity spending. Experts say businesses must improve security controls, test systems more rigorously and strengthen their ability to detect emerging threats. 

Also Read: Anthropic Opens Advanced Claude Models to More Cybersecurity Firms

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